How to Choose the Right Financial Instrument to Attract Investors

The choice between SAFE, Convertible Note & Equity is as important as the terms

DC Palter
Entrepreneurship Handbook
9 min readSep 7, 2021

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Y-Combinator SAFE. Illustration by Author.

As an early-stage angel investor, I see dozens of pitches each month. The deals are split roughly equally between SAFEs, convertible notes, and equity.

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Entrepreneur, angel investor, startup mentor, sake snob. Author of the Silicon Valley mystery To Kill a Unicorn: https://amzn.to/3sD2SGH